Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025; Chip EQUIP Act
Summary
The Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2025 (Chip EQUIP Act) aims to restrict the purchase of certain semiconductor manufacturing equipment from foreign entities of concern and their subsidiaries. It amends the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 to define 'ineligible semiconductor manufacturing equipment' and prohibit the use of federal funds for its procurement, installation, or use. Waivers are possible under specific conditions, such as lack of domestic availability or national security interests.
Expected Effects
This act will likely impact the semiconductor industry by limiting access to certain foreign-made equipment. It could incentivize domestic production and innovation in semiconductor manufacturing. However, it may also increase costs and create supply chain challenges if suitable alternatives are not readily available.
Potential Benefits
- Strengthens national security by reducing reliance on foreign entities of concern for critical technology.
- Incentivizes domestic production of semiconductor manufacturing equipment.
- Promotes innovation and competitiveness in the U.S. semiconductor industry.
- Potentially creates jobs in the domestic manufacturing sector.
- Reduces the risk of intellectual property theft and espionage.
Potential Disadvantages
- May increase costs for semiconductor manufacturers due to limited equipment options.
- Could lead to supply chain disruptions if domestic alternatives are not readily available.
- May hinder access to advanced technologies if foreign equipment is superior.
- Potential for retaliatory measures from foreign countries.
- Waivers could create loopholes and undermine the act's intent.
Constitutional Alignment
The Chip EQUIP Act aligns with the Constitution's broad goals of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress's power to regulate commerce with foreign nations (Article I, Section 8, Clause 3) supports the act's restrictions on purchasing equipment from foreign entities. The Act does not appear to infringe on any specific individual liberties or rights outlined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).